Many people want to make money at home without leaving their homes. Cross-border e-commerce is a good choice. Amazon is a website with a large amount of traffic. Everyone should have heard of Amazon when they first learned about overseas shopping. So what is the cost of opening an Amazon store? Next, follow the editor to take a look!
1. Monthly rental fees and sales commissions
Amazon Global Store has two types of accounts: Professional and Individual. These two are the two major account types of Amazon. We can choose according to personal or company circumstances.
Their fee rates are also different:
Professional: Fee = Sales Commission + Monthly Rent
Individual: Fee = Sales Commission + Per-item Charge
In addition, Amazon has three major sites in Europe, North America, and Japan. Each site is different and the fees charged are also different.
2. FBA Fees
If you want to do well on Amazon, it is very necessary to launch FBA.
Note: FBA fee = first-leg fee + FBA logistics distribution fee + monthly storage fee + inventory configuration service fee.
Logistics and distribution fees: the fees charged by Amazon when shipping using FBA. Generally it is charged by piece. The amount of money charged for each item depends on the weight and size of the product. Moreover, the logistics and distribution costs will be adjusted at different times.
Monthly storage fees: Amazon's products can be divided into standard size and super-standard size according to their size; according to their nature, they can be divided into media products and non-media products. If you use the FBA warehouse service, you will need to pay the FBA warehouse rental fee proportionally per cubic foot per month.
Inventory configuration service fee: that is, inventory configuration service fee, which is also the warehouse closing fee. When sellers convert their listings to FBA shipments, Amazon will randomly distribute your products to multiple warehouses. Amazon uses separate warehouses by default. If you do not set up combined warehouses, you do not have to pay this fee. If you set up combined warehouses, Amazon will charge per piece, and the specific fee depends on the number of destinations selected.
Regarding FBA’s long-term storage fees, shipping/return fees, and the calculation standards for shipment size and weight, the tutorial “Reduce operating costs, start with FBA fee calculation” has a detailed introduction, so I will not go into details here.
3. European VAT
There are three VAT rates:
20% standard rate (applies to most goods and services)
5% low tax rate (fuel and household energy, sanitation products, energy-saving materials, child seats, etc.)
0% tax rate (applicable in very few cases: baby clothes and shoes, books and newspapers, public transportation and sanitary napkins)
It’s not easy to open a store, and it’s even harder to keep it! While everyone is working day and night to increase sales, they must also control the costs of each operating link and stabilize profits to ensure the steady development of the team.
The above items are the simplest costs of opening a store. There are other cost expenditures, such as product costs, logistics and packaging costs, labor, warehousing expenses, etc., which need to be calculated based on actual conditions.